MANILA, Philippines — The stock market pulled back last week, but traders said it should be an opportunity for market investors to accumulate.
Astro del Castillo, managing director at First Grade Finance Inc., said with the Philippine Stock Exchange index (PSEi) stock market gauge falling again last week, investors should hunt for some bargains.
The next key levels are 6,500 to 6,800, if bargain hunting does not prop up the market, said Jonathan Ravelas, chief market strategist at BDO.
“Should the 6,900 level fail to support the market, the next key levels are at 6,500 to 6,800,” he said.
At the same time, Ravelas said, the market may make another attempt toward the 7,300 level.
Last week, the PSEi fell by 2.40 percent to close at 6,968.82, which Ravelas said was an indication that the 6,900 support level provided a good fight.
The PSEi reacted negatively to the latest economic report which showed the third quarter economy slowing down to 6.1 percent year-on-year in the third quarter from an upwardly revised 6.2 percent in the second quarter.
“Due to this, the market fell below the 7,000 levels as it digested the numbers,” Ravelas said.
But Christopher Mangun of Eagle Equities said that despite GDP numbers coming in below estimates, analysts are optimistic that economic data would improve in the coming months as inflation has appeared to have plateaued, oil prices continue to drop, and the currency getting stronger.
“There is a strong possibility that investors will start getting back into this market and begin picking up issues that have been heavily battered this year,” Mangun said.
Mangun said there are indications the market wants to go up again and are doing everything it can to keep it afloat.
“The next target for the index is the resistance at 7,200. If it can break that, then 7,500 would be the next major resistance. Its all going to come down to whether or not investors will start buying into this market now till the end of the year or wait till the beginning of next year,” he added.